AI can help developing economies achieve century's progress in a decade if governments act now: World Bank
New Delhi, August 5
Artificial intelligence could enable developing economies to achieve in a decade what might otherwise take a century, provided governments move quickly to bridge gaps in electricity, internet connectivity, skills and institutional capacity, the World Bank said in its World Development Report 2026: The Promise of Artificial Intelligence.
The report said AI presents a significant opportunity for developing countries to accelerate economic growth and improve the delivery of public services at a time when these economies are experiencing their weakest average growth performance in three decades.
According to the report, only 4.5 per cent of existing jobs in low- and middle-income countries are at risk of automation from generative AI, compared with 14.2 per cent in high-income economies. At the same time, AI could meaningfully enhance productivity in 16.2 per cent of jobs in developing economies, close to the 18.7 per cent projected for high-income countries.
The World Bank said the greatest potential of AI in developing countries lies in augmenting workers rather than replacing them."AI has thrown developing economies a lifeline, and they should seize it," said Indermit Gill, Senior Vice President and Chief Economist of the World Bank Group.
He said developing countries do not require massive AI models or large-scale data centres to benefit from the technology, adding that affordable AI tools adapted to local needs could improve access to healthcare, education, judicial services and agricultural extension for millions of people.
The report noted that AI is already being deployed by governments and businesses in developing economies to analyse information, improve forecasts, solve problems and deliver services more efficiently. It said AI could help doctors diagnose patients more effectively, enable farmers to make better crop decisions, increase business productivity, and assist governments in improving tax administration, social welfare programmes, disaster response, healthcare and education.
However, the report cautioned that the benefits of AI are not guaranteed. It warned that the most advanced AI technologies are currently concentrated among a handful of countries and companies, while many developing economies continue to face shortages of electricity, digital infrastructure, computing power, local data, skilled workers and effective institutions.
Without timely policy action, AI could widen development gaps between countries, increase inequality within societies, concentrate market power and create new challenges related to public trust, privacy, safety and social cohesion, it said.
To address these risks, the report recommended a phased strategy for developing economies--first adopting existing AI tools, then adapting them to local conditions, and eventually advancing towards frontier AI development as foundational capabilities improve.
"The window to get this right is narrow," said Gaurav Nayyar, Director of the World Development Report 2026.
He said countries that invest now in reliable power supply, digital connectivity, human capital and stronger institutions will be better positioned to harness AI for economic and social development.
The report also called for greater access to computing infrastructure, improved availability of local-language data, stronger evidence-based evaluation of AI projects, and clearer procurement frameworks. It added that governments should encourage responsible AI adoption through voluntary industry standards backed by international cooperation, while using existing laws to address potential harms and safeguard public trust.
— ANI
Reader Comments
The report makes a good point about AI augmenting workers rather than replacing them. In India, if we can use AI to help our farmers make better crop decisions or assist our doctors in rural areas, that would be a game-changer. But the key is making it affordable and accessible to everyone.
"Achieve in a decade what might take a century" - this sounds too good to be true. Every year we hear such grand promises about technology, but what actually changes on the ground? We need to see concrete plans, not just reports. Also, who is going to ensure data privacy for our citizens? 🤔
The point about local-language data is crucial. India has 22 official languages and hundreds of dialects. If AI tools are only in English, they won't help the majority of our population. We need desi AI solutions, not just imported ones! 🇮🇳
As someone working in the tech sector, I can say this report is spot-on about the skills gap. We produce thousands of engineers every year, but how many are actually trained to work with AI? Our education system needs a major overhaul. The window is narrow, as the report says - we need to act fast.
The World Bank says only 4.5% of jobs in developing countries are at risk of automation, but what about the informal sector? Millions of Indians work in jobs that might be affected. The report should talk more about social safety nets and reskilling programs. We can't leave anyone behind.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.